WASHINGTON – The consumer price index rose 0.2% in April as expected, the Bureau of Labor Statistics reported. It had declined 0.3% in March.
BLS senior analyst Steve Reed, who assembles the report, told Market News International that without the outsized increase in tobacco caused by the new California cigarette tax, the April CPI would have risen just 0.1%. The month's only other major upward driver was shelter, rising 0.3%.
"If you're looking for signs of inflation pressure it's hard to argue for it when you see so many declines," Reed said. Prices dropped for wireless phone charges, medical care, auto insurance, used and new cars and recreation. Food rose just 0.2% and energy was up the expected 1.1%.
The CPI over-the-year increase decelerated to 2.2% from the 2.4% through March, which the BLS pointed out is still larger than the 1.7% average for the past decade.
The CPI core rate rose 0.1% and its annual change was 1.9%.
